A bill creating a 'rainy day fund' to cover budget deficits in Nevada's K-12 school system was debated Monday by Senate Finance Committee members.
Money for the fund proposed in SB150 would come from excess revenue in the state's education budget that would normally revert to the state general fund, Randy Robinson of the Nevada Association of School Superintendents said.
"The benefit of a rainy day fund for education would be to allow us to soften the landing when we are forced to make cuts to the education budget," Robinson said, adding that it's getting harder for schools to avoid cutting programs and staff as the state's economic downturn continues.
Robinson said about $164 million in education funding reverted to the general fund and was used for non-education purposes during the 2007 session.
"If it's collected in the name of education, it should stay in education. An education stabilization fund must be established to protect schools in lean times," Robinson said.
"Had those dollars been deposited in a rainy day fund for education, those students would have been protected from the recent rounds of budget cuts."
Sen. William Raggio, R-Reno, said he supports the bill's concept, but added it may set a precedent for requests from other agencies for similar funds. Excess revenue is used to plan the state's future budgets, he said.
"Where do we go from here?" Raggio asked. "Do you recommend it also for higher education? Do you recommend it for sensitive areas such as mental health, retardation, autism? Where do we draw the line?
Raggio also said that the bill doesn't cap the amount of excess revenue that could go into the fund, adding, "We could go on and on in good years."